Coty Accelerates AI Across Operations: A New Margin Lever?

Coty Inc. (COTY) is steadily weaving artificial intelligence into the core of its operation. The company has now activated a refreshed digital roadmap designed to push AI deeper into day-to-day functions. This shift reflects Coty’s intent to transform how decisions are made, how content is produced and how resources are allocated.A major pillar of this effort involves elevating content creation and automating routine workflows using agentic AI. By applying predictive analytics and richer data visualization, Coty is aiming to support faster and more informed decision-making. The company is also introducing AI-driven chatbots to enhance user experiences, minimizing manual effort while improving responsiveness.Coty is extending AI into strategic functions as well, including procurement. New digital assistants are helping reshape how contracts are structured and how negotiations unfold. At the same time, the company is preparing for the growing wave of agentic shopping on retail platforms. Coty has already begun building tools to refine product selection, strengthen personalization and power virtual try-on technologies.These layers of automation and intelligence are also reshaping Coty’s cost structure. Streamlined content production and more efficient back-end processes are unlocking savings that can be redeployed toward working media. Management noted that the early results are encouraging, with benefits already visible and expected to scale meaningfully over the next year as the new systems mature.Coty’s expanding AI roadmap appears well-positioned to become a meaningful margin lever. The company is already capturing early efficiencies in procurement, content creation and back-end automation, with management expecting these gains to build through the coming year.Coty’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have lost 22.9% in the past three months compared with the broader Consumer Staples sector’s 3.5% decline. COTY has also underperformed the industry’s decline of 5.8% and the S&P 500 index’s growth of 7.9%, during the same period.COTY Stock's Past 3 Months PerformanceImage Source: Zacks Investment ResearchIs COTY a Value Play Stock?Coty currently trades at a forward 12-month P/E ratio of 7.32, below the industry and the sector’s average of 26.35 and 16.48, respectively. COTY P/E Ratio (Forward 12 Months)Image Source: Zacks Investment ResearchStocks to ConsiderSally Beauty Holdings, Inc. (SBH) operates as a specialty retailer and distributor of professional beauty supplies. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year sales and earnings calls for growth of 1.3% and 8.4%, respectively, from the year-ago reported numbers. Sally Beauty delivered a trailing four-quarter average earnings surprise of 10.3%.Ulta Beauty, Inc. (ULTA) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2. ULTA delivered a trailing four-quarter earnings surprise of 16.3%, on average.The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales indicates growth of 6.8% from the year-ago reported numbers. Five Below, Inc. (FIVE) operates as a specialty value retailer in the United States and currently carries a Zacks Rank #2. FIVE delivered a trailing four-quarter earnings surprise of 50.5%, on average. The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 16.2% and 1.2%, respectively, from the year-ago reported numbers.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Sally Beauty Holdings, Inc. (SBH): Free Stock Analysis Report Five Below, Inc. (FIVE): Free Stock Analysis Report Coty (COTY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks